Dragon Forest is the fourth world at Timber's Island in Diddy Kong Racing and Diddy Kong Racing DS. The world is mostly medieval-themed full of castles, villages, and windmills. The entrance to this world is behind the waterfall to the left of the statue of Wizpigs head in the center of Timber's Island, the player needs 16 balloons Golden Balloons to enter this world. Smokey the Dragon is the boss of this world.
An old-fashioned, almost medieval area where chivalry still lives, heroes roam in search of kidnapped maidens, and the last thing you'd expect to see is a team of modern vehicles bursting neck-and-neck from the undergrowth and zipping around the front of the local castle! In Dragon Forest you'll get to surf the log-ridden flow of Boulder Canyon, cruise the bustling streets of Greenwood Village, breeze through the wide open spaces of Windmill Plains and watch your back in the Haunted Woods...
–Description from the Diddy Kong Racing Instruction Booklet
Windmill Plains is the first track of Dragon Forest. The track takes place among green countryside dotted with windmills, tunnels and waterfalls. A total of 16 Golden Balloons is required to enter this course, and after Smokey is defeated the first time, the total of balloons needed to reenter this course increases to 23.
Greenwood village, as the name suggests, is set within the roads and tunnels of a medieval village where racers must navigate the many houses, corners, and occasional well. The player needs a total of 17 Golden Balloons to access this course, and the total to reenter the course increases to 24 balloons after defeating Smokey the first time.
Boulder Canyon is a water-based track that can only be raced via hovercraft. Players face many obstacles including logs, rapids, castle drawbridges, and a fork in the road. This track also features the key to this world's battle arena. A total of 20 Golden Balloons is needed to access this course, and the reentry total increases to 30 after Smokey is defeated the first time.
Haunted Woods is yet another track where players race around a village, but this time the players also face a spooky wood full of spirits (that resemble Wizpig), and grimy castle dungeons. The player needs a total of 22 Golden Balloons to enter this course, and after defeating Smokey the first time, the total to reenter increases to 37 balloons.
Smokey Castle is the battle track for Dragon Forest. To win, players must be the first to collect 10 bananas in their chest from around the arena, they can only carry a maximum of 2 bananas at a time.
Smokey's course is the boss track of Dragon Forest and is set in hills resembling Windmill Plains, but also features large stretches of caves.
- Two of this world's tracks, Windmill Plains and Greenwood Village, share track music.